AirTrunk unveils second hyperscale data centre campus in Melbourne amid rising AI infrastructure demand

AirTrunk unveils second hyperscale data centre campus in Melbourne amid rising AI infrastructure demand is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• AirTrunk to invest over A$5 billion in a new 354 MW hyperscale data centre campus (MEL2) in Melbourne’s north-west, lifting its total capacity in the city above 630 MW
• The expansion supports Australia’s National AI Plan but raises questions about economic and environmental trade-offs of large-scale digital infrastructure

What happened: AirTrunk secures Melbourne site for second hyperscale data centre campus

Australian data centre operator AirTrunk has acquired land in the north-west of Melbourne for a second hyperscale data centre campus in the city, to be known as MEL2. This facility will have over 354 megawatts (MW) of capacity and represent more than A$5 billion of new direct investment, according to the company’s announcement on 24 December 2025. 

Once completed, MEL2 will complement AirTrunk’s existing Melbourne site, MEL1, bringing the company’s total planned deployable data centre capacity in the city to more than 630 MW. Across Australia, the operator will run five campuses, including three in Sydney and two in Melbourne, delivering a combined capacity exceeding 1.2 gigawatts. 

AirTrunk says the new campus will create over 4 000 jobs during construction and more than 200 direct operational roles, along with more than a thousand additional full-time jobs in the local supply chain. Victorian Premier Jacinta Allan welcomed the investment, highlighting its potential role in bolstering the state’s digital infrastructure and technology ecosystem. 

The expansion in Melbourne closely follows AirTrunk’s recent announcement of a new hyperscale campus in Osaka, Japan, known as OSK2. Together, MEL2 and OSK2 will further extend the company’s footprint across the Asia Pacific and Middle East markets, where it now plans to operate at least 15 data centres.

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Why it’s important

AirTrunk’s Melbourne expansion comes at a time when demand for cloud computing and artificial intelligence (AI)infrastructure is surging globally. Australia’s National AI Plan, released in late 2025, outlines ambitions to position the country as a global AI hub through investment in infrastructure and skills, focusing on spreading benefits across industries while ensuring responsible governance. Proponents view MEL2 as a concrete step towards achieving these goals. 

Yet questions remain about the broader impacts of such large-scale digital infrastructure. While data centres are often promoted as key enablers of innovation and economic growth, they also have significant energy and resource requirements. The data centre industry in Australia already accounts for a sizeable portion of digital economy investment and is expected to continue expanding investment in grid and water infrastructure through 2030. 

Critics may ask how effectively job creation projections materialise beyond the construction phase and whether the economic benefits justify the concentration of resources in hyperscale facilities. Comparisons with other major investments in the sector—such as Amazon’s multi-billion-dollar expansion of Australian data centres—illustrate both competitive dynamics and mounting pressure on policy makers to balance growth with long-term sustainability and community outcomes. 

At a local level, while Melbourne’s position as a key connectivity hub makes it attractive for digital infrastructure, urban planning and environmental advocates might question the trade-offs implicit in prioritising massive data centre campuses over other forms of development.